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Committee sends annual tax-conformity bill to House with ‘do pass’ recommendation
Summary
The House Revenue and Taxation Committee voted to send House Bill 3, the annual tax-conformity bill, to the full House with a due-pass recommendation after sponsor Representative Ehlers described the measure and clarified how it treats certain 2020 unemployment benefits.
The House Revenue and Taxation Committee voted to send House Bill 3, the annual state tax-conformity bill, to the full House with a ‘do pass’ recommendation after a brief presentation by the bill’s sponsor, Representative Ehlers.
Representative Ehlers told the committee the bill would align state tax rules with the federal tax code to reduce confusion for taxpayers and districts. “This is House Bill 3, the annual tax conformity bill to allow us at the state level to conform to the federal tax code, saves taxpayers and all of your districts time and makes it less confusing just to use the basis of the federal tax code,” he said.
Ehlers also clarified a prior question about the Internal Revenue Code. He said the committee’s draft references Internal Revenue Code section 85 as dated to January 2020, explaining that when Congress, during 2021, excluded a portion of unemployment benefits from federal taxable income for the 2020 tax year, the state chose not to follow that federal change. “The reason for that is in the year 2021 during the COVID era, Congress decided to exclude a certain level of unemployment benefits from being taxable, just for the calendar or for the tax year 2020,” Ehlers said. He told the committee the bill retains language that limits conformity for those benefits to the 2020 tax year and that the language may remain for “maybe another year or two” so late filers can amend 2020 returns if needed.
Before taking up the bill, the committee approved the minutes from its January 9, 2025 meeting. Representative Burch moved to approve the minutes; the motion carried by voice vote.
After Ehlers’ remarks, Representative Raybould moved that the committee send House Bill 3 to the floor with a due-pass recommendation. The committee voted by voice and the motion passed. The committee chair noted there would be no meeting the following day and adjourned.
Votes at a glance: House Bill 3 — motion to send to the House with a due-pass recommendation (moved by Representative Raybould; passed by voice vote). Approval of minutes (moved by Representative Burch; approved by voice vote).
